Zakat and its Role in Fiscal System of Islam

Zakat and its Role in Islam

The word Zakat means to purify, to grow and to improve. It refers to the purification of soul, character, life and wealth which is acquired after the payment of Zakat. Wealth is dear to everyone, but who pay out wealth on others is achieve goodness and purity.This aspect of purification has been stated in Sura Al-Taubah in These word: take alms (Zakat) out of their property, thou wouldst cleans them and purify them thereby.

The wealth which is accumulated in few hands and not spent for other creates certain evils in the society. It leads towards class conflict in the society. The payment of Zakat removes all such types of evils from the society.

Zakat is levied to attain the following objectives:

Purification of Soul

Zakat purifies the soul of contributor from the evils of miseries. It makes them humble and God fearing. This also cleanness wealth crates love among people.

Healthy Growth of the Community

The payment of Zakat direct to the well development of the community. The amount collected through Zakat it spent for the uplift of the poor and welfare of the masses.

Economic Inequalities

One of the most important objective of Zakat is to narrow down the economic discrimination in the community to the minimum possible limit. It aims to keep the economic differences among the peoples within safe and justified limits, so that the rich may not grow richer and the poor, poorer. Zakat is a religious duty of the rich popple to pay in orders to help the poor members of the community. In this way Islam keeps the wealth in circulation and does not let it concentrate in few hands.

Wider Circulation of Wealth

Islam being a natural din does not let the income to be concentrated in few families. Zakat institution is strong weapon for fulfilling this major aim. The mechanism of Zakat will be helpful as the money would go to poor class from rich group. It increases the speedy circulation which is necessary for running smoothly economic system.

Main Source of Income

Zakat occupies control position in the financial structure of Muslim state, because it contributes too much towards national treasury or Baitul- Mal, whose doors are always open fro help to needy and deserving persons.

Fair Distribution of Wealth

As Islam against accumulation of wealth in few hands, Therefore, Zakat meets an important purpose for spreading and distributing of wealth which becomes just and equitable. It guarantees that income is not centralized rather moves very rapidly among different groups of society and which turn leads to growth.

Minimizes Unemployment

Zakat is very vital instrument for removing unemployment. The money received by the poor can be used and he can’t start a business for supporting his family. Moreover takes benefit from it.

Removal of Crises

If people hold money in gold or cash, they will have to pay Zakat on it; hence they prefer to do business instead of boarding or keeping it idle. It pushes the level of investment, output and employment that do away with depression.

Up- Rooting Poverty

Zakat is significant tool of eliminating penury and diversity from the society. It brings about prosperity. The people become well off and their all needs and wants are full-filled easily.

Mobilization of Resources

Another point throws light on its imp0rtance that such individuals who get income in the shape of Zakat are in a position to utilize the available resources with it. In this way maximum use of resources becomes possible and the nation feels it advantages to great extent.

Economic Security

The Zakat is shining and simple principle which is very helpful to the persons who sometimes are caught in adversity and misfortune. The well to do individuals can give them financial aid; hence they would be in position to get rid of the problem. So it provides social security.

Controlling Crimes

We know that several men indulged themselves into evil of theft, corruption, adulteration, fraud and dodge because of having small income. They cannot meet their genuine needs sometimes and become criminals. Zakat is a strong safe- guard against these doing. It can be used for over-coming them. It washes away greediness and selfishness and creates moral courage.